The DeaconCapital business model has been in place since its inception in 2007, and has proved its viability during this time. The main Client Benefits are as follows:
DCAM is an independent financial services provider that works directly for its clients in all its three lines of business. This independence is assured by DCAM’s compensation structure.
II. Discretionary investment management:
DCAM avoids any conflict of interest by being directly compensated by the Client and not by the Designated Banks or financial institutions via retrocession’s or rebate on commissions generated.
DCAM compensation is in the form of Management and Performance fees. The performance fee element (subject to out-performing the applicable Hurdle Rate and High Water Mark) aligns DCAM’s interests with those of the Client.
DCAM negotiated favourable pricing with the Banks on behalf of its Clients, as part of its agreement with these Banks, covering the execution / custody costs for DCAM Clients at such Bank(s).
Risk Management System / Portfolio Overview:
DCAM maintains a robust proprietary Risk Management System (“RMS”) framework. The RMS data-base is updated daily via the on-line access / data downloads from each of the Designated Banks DCAM has an EAM agreement with. This ensures that the client data in the RMS covering each single security position, FX hedges and cash balances match those of the respective Bank(s).
As part of the RMS, DCAM produces a Portfolio Overview (“PO”) report for any of its Clients, upon request. The PO specifies the asset allocation percentages breakdown versus each client investment mandate guidelines, currency exposures (gross and net after hedging), Equity allocation analysis (by sector & geographical breakdown), Fixed Income allocation (by credit rating, coupon type & maturity) and other metrics. When the Client maintains multiple portfolios at different Banks the PO report consolidates all the portfolios across those banks.
DCAM, for each of its clients’, reports on a semi-annual basis. In addition to the PO, the report presents the performance calculations with the performance of selective global indices per asset class, the applicable Hurdle Rates and any other investment / market commentary.
The Client continues to receive, on a monthly basis, the account statements from the designated bank(s), as agreed between the client and the bank with the client having the option to request on-line access. The designated bank(s) statement(s) also include performance measurements.
III. Private Client Services:
DCAM strives to deliver a superior service via a stable and committed team. DCAM is not afflicted by high turnover that is a ‘feature’ of some of the major banks.